Incentives for First Time Homebuyers

The Liberals proposed the ‘First Home Savings Account’ (FHSA) as part of their 2021 election platform to help Canadians under the age of 40 save for a down payment on their first home.

First Home Savings Account

The account will be a combination of an RRSP and a TFSA. Contributions to the FHSA will provide the taxpayer with a deduction that can be used to reduce their income for the year. The maximum contribution is $40,000, and account funds will grow tax-free. When the funds are withdrawn, the growth won’t be taxable if the funds are used to purchase the taxpayer’s first home. Read more

CRA Extends Tax Deadline

The Canada Revenue Agency (CRA) is extending the payment due date for current-year individual, corporate and trust income tax returns — including instalment payments — from Sept. 1 to Sept. 30.

The CRA said Monday that it will not charge penalties and interest if payments are made by the extended deadline of Sept. 30. This includes the late-filing penalty as long as the return is filed by Sept. 30. Read more

Canada, US poised to extend border restrictions until August 21st

TORONTO — The U.S. and Canada are poised to extend their agreement to keep their shared border closed to non-essential travel to Aug. 21, but a final confirmation has not been given, a person familiar with the matter said Tuesday.

One of Canada’s highest-profile medical experts throughout the COVID-19 crisis, Dr. Isaac Bogoch, told the CBC last week that he wouldn’t be surprised if the Canada-U.S. border stays closed until into 2021. Read more